341–350 of 443 posts
As an associate financial planner working under a lead planner at an RIA firm, this is an interesting article but I was very disappointed by the comments here in this thread, like "I don't understand why advisors still exist" (meanwhile the RIA world is absolutely exploding and our firm can't handle the amount of families contacting us for advice). The purpose of my job, and this profession, can be split into two hal…
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If you only have a fixed amount of money to put aside every month, DCA makes sense. That applies to 99% of people. Not terrible at all.
That's not really DCA, at least how I understand it. DCA is something like "I have $520,000 in cash right now today sitting in checking, I'm going to buy $10,000 a week of VTSAX for the next 52 weeks" which on average is a bad strategy. What you're describing is better analyzed as a continuing series of lump sum investments. You're investing as soon as you have cash available, not unnecessarily holding onto cash.
Yeah for a start if you're really planning to buy $10 K of a world fund pick one with stock options. Sell a PUT secured by the $10 K with a 7 DTE. This is already guaranteed better returns (but still a bad strategy) than this dumb way of DCAing.
But when people say they DCA what they mean is basically: "I make $10 K net per month, I spent $6 K, I keep $1 K in cash and I invest the $3 K that are left". Which is actually not a bad strategy at all.
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I didn't downvote them, but I am genuinely curious to hear from people who "can't save money", and try to understand why that's the case. My assumption is that a large percent of them are spending way more than they need to, but that could easily be an incorrect stereotype.
Federal Reserve studies indicate that 10-15% of the US population can’t save money due to fundamental financial realities. That is, the necessary expenses of an ordinary lifestyle consumes all of their income. That is tens of millions of people. There is another ~30% that expand their lifestyle to consume all available income. Not saving is a choice for this part of the population.
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I can assure you, in most places you will not be fined or put in prison for not having a home. In most places the local council, or charities will help provide you shelter even if only on a temporary basis. Your statement is not in line with reality.
Have you been homeless?
Sorry, your appeals to emotion aren't effective, and your arguments do not agree with reality.
There is no able bodied person in the US who is unable to save and invest enough of their income to have a decent life. Anyone who tells you otherwise is either lying or ignorant about reality.
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Index funds are not risk free! We have had a solid 15 years and everyone forgot that there are decades of declines or stagnation.
LFSPA is a cap note, not an index fund. Hence the lower returns, haha. Not saying it's necessarily the ideal vehicle but anything beats the banks.
while you’re at it maybe pick up some Indian bonds which have a high coupon close to 8%?
I wonder if telling (or somehow architecturally coaxing) the LLM it has 'skin in the game' will make it more risk-averse? I imagine it does. This makes me wonder too about the entire premise and worthiness of these evals. They orient themselves around normal one-shot interactions with a likely non-sys-prompted model with no built up context or memory of the person. I doubt the mentioned 'job loss' scenario is even co…
Our AI, Pendragon ( https://pendragon.foxtrotcommunications.net/ ) doesn't stop at one and done interactions. It actively works to get to know you and your household's finances so that it can build an effective model. It also produces confidence scores based upon what it knows (and what it doesn't) to always give you a complete picture. The more information you give pendragon the better your answers will be. Pendrago…
I’d rather get no response than be patronized, so no linking to corporate policy documents on your website please.
I wonder if telling (or somehow architecturally coaxing) the LLM it has 'skin in the game' will make it more risk-averse? I imagine it does. This makes me wonder too about the entire premise and worthiness of these evals. They orient themselves around normal one-shot interactions with a likely non-sys-prompted model with no built up context or memory of the person. I doubt the mentioned 'job loss' scenario is even co…
Our AI, Pendragon ( https://pendragon.foxtrotcommunications.net/ ) doesn't stop at one and done interactions. It actively works to get to know you and your household's finances so that it can build an effective model. It also produces confidence scores based upon what it knows (and what it doesn't) to always give you a complete picture. The more information you give pendragon the better your answers will be. Pendrago…
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Index funds are not risk free! We have had a solid 15 years and everyone forgot that there are decades of declines or stagnation.
That's why you hedge with Bogleheads three headed fund. Bonds are strong when the indexes are weak according to them
The sibling comment addresses bond funds.
ZIRP, 2008, Covid, trump, big tech, and AI all came after Boyle.
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> 2. Buy inexpensive, well-diversified mutual funds such as Vanguard Target 20xx funds. I wouldn't recommend this after seeing how SpaceX was literally shoved down lots of people's throats.
> I wouldn't recommend this after seeing how SpaceX was literally shoved down lots of people's throats. If you're going to buy a "total market" fund, then SpaceX is part of the market. There were strange financial things with GE, Enron, etc , and they were part of index(es): you have to take the good with the bad when it comes to human (economic) behaviour. Most stocks suck: * https://papers.ssrn.com/sol3/papers.cfm?…